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HomeMy WebLinkAboutC32021 - FY 2013-14 - Mrkting-Pblc Relations Svcs CITY OF PALM DESERT STAFF REPORT REQUEST: AWARD CONTRACT NO. c32o21 TO OFF MADISON AVE FOR DIGITAL MARKETING AND PUBLIC RELATIONS SERVICES FOR FISCAL YEAR 2013/14 SUBMITTED BY: Donna Gomez, Tourism & Marketing Manager CONTRACTOR: Off Madison Ave 5555 East Van Buren Street, Ste. 215 Phoenix, AZ 85008 DATE: June 13, 2013 CONTENTS: Contract No. c32o21 Recommendation By Minute Motion: 1. Award Contract No.c32o2i to Off Madison Ave (OMA) for digital marketing and public relations services; and 2. Authorize the Mayor to execute the agreement on behalf of the City; and 3. Authorize the expenditure of an amount not to exceed $200,000 for digital media buying and production services; and 4. Authorize the expenditure of an amount not to exceed $87,000 for account management. Executive Summary The City of Palm Desert has contracted with Off Madison Ave for digital marketing services since 2008. In 2012 the City went out to bid for these services and again found OMA to provide the necessary experience and services at a competitive rate. At that time, City Council approved a one-year contract with the option to renew for one additional one-year period under the same terms, conditions and rate. OMA is proposing to provide the same services at the same rate as provided during fiscal year 2012/2013. Their level of experience, professional staffing, and knowledge of the Palm Desert brand continue to make OMA the most valuable and efficient resource for providing for the City's digital marketing needs. Contract No. C32021 Staff Report Digital Marketing Services June 13, 2013 Page 2 of 4 Backqround Digital marketing is a critical component to any successful marketing program. With the rapidly advancing technology and expanding use of computers, smart phones, and mobile devices, it is important to ensure a strong presence within this realm. The City's current digital program has experienced much success and staff would recommend continuing to have a strong visibility online. The complexity and ever-changing environment of the online marketing industry requires the expertise of an agency made up of specialists in a variety of fields. OMA has been providing digital marketing services for the City for the past five years. They have consistently provided a quality product including original design and implementation of the City's tourism website which continues to experience much success as demonstrated through its ever increasing traffic and activity. Most recently OMA completed a website refresh including making it mobile friendly so that it adapts to all mobile devices. As well as the added feature that allows visitors to the site to book reservations for restaurants and hotels. OMA is a full-service advertising agency specializing in internet marketing and offering a wide variety of services including interactive website design, online marketing research and strategy, online advertising, as well as monitoring and analysis of online advertising buys, pay-per-click and search engine optimization. OMA produces and distributes a monthly e-newsletter on the city's behalf. They also provide monthly reports for each initiative and recommend areas for improvement while making cost efficiency and effectiveness a priority. This year, OMA also designed and implemented successful cooperative advertising programs befinreen the City and EI Paseo Business Improvement District, Palm Springs Art Museum in Palm Desert, and The Living Desert. OMA proposes continuing the same monthly retainer of $7,250 which includes the following services: • Account/Brand Management • Media management and reporting (placing online ads, monitoring effectiveness, making adjustments, ete.) • Search Engine Optimization management, adjustments, and reporting • Pay-Per-Click management, adjustments, and reporting • Consulting for social media and strategic initiatives • Regular development and creative services (new) • Public Relations services (new) • E-newsletter production and management • Website management Hard costs associated with online advertising placement, search engine optimization (SEO), and pay-per-click (PPC) would not be included in the monthly service fee and are included within the marketing department's budget request for fiscal year 2013/14 under "media buys" at approximately $155,000. OMA will continue to offer creative and G:Uda�Donna\Staff Reports�2013�Digital Marketing StatTReport FY 2013-14.doc Contract No. C32021 Staff Report Digital Marketing Services June 13, 2013 Page 3 of 4 production services outside the scope of the contract at $125.00 per hour and will not charge any agency commissions or mark-ups. The following is a brief synopsis of significant accomplishments experienced with OMA over the past year (July 1, 2012 — June 2013): Online Media • Impressions from FY13 increased 178% year over year (from 7.3 million to 20 million). • Total clicks to the site increased by 375% year over year • Click Through Rate (CTR) was up 71% year over year (from 0.13% to 0.22%) Paid Search (PPC) • Search CTR was up 14% year over year • Display CTR was up 225% year over year • Bounce rate from PPC was down 15.81% as a result of sending people to site content rather than landing pages Facebook Facebook impressions were down 46% while clicks were up 305% year over year. As a result, the campaign saw a 649% increase in CTR from 0.017% to 0.130%, and well above the .04-.06% industry average. This decrease in impressions and increase in clicks demonstrates that we are reaching a more qualified audience. Website • Unique Visitors were up 7.14% year over year • Visit are up 4.7% year over year • Mobile traffic is up 59.35% year over year • Traffic to the events page was up 22.45% year over year Projects • Updated website to be adaptive/responsive to mobile devices • Added features to website that allow for reservations and immediate/direct contact with Palm Desert businesses • Developed and implemented three successful cooperative advertising campaigns with community partners • Ensured a strong presence on popular travel planning and booking websites In order to achieve and maintain such positive results, OMA works daily on the City's tourism website, keeping content relevant and fresh. They regularly track and manage results of online ad placements to ensure adequate return on investment. All of these efforts have lead to an increase in brand awareness and higher search engine rankings for the City's tourism website. Analytics have shown palm-desert.org experiencing tremendous growth in the mobile arena with 35% of site traffic generated from mobile devices. OMA is proposing to adapt our existing website to accommodate all mobile G:�rda�Donna\Statl'Repons�2013�DigitalMarketingStaffReport FY2013-14.doc Contract No. C32021 Staff Report Digital Marketing Services June 13, 2013 Page 4 of 4 devices which will increase site functionality and accessibility of Palm Desert information and services. Staff is confident that OMA will continue to provide exemplary services and results on behalf of the City of Palm Desert and its digital programming and recommends contracting with OMA for online marketing and public relations services for a one year period, fiscal year 2013/14. Fiscal Analvsis Approval of this contract would ensure continued exposure for Palm Desert in the growing digital marketing realm. This contract would impact the general fund by $87,000 for monthly account management services and up to $200,000 for media buys, production and creative expenses. Denial of the request would negatively impact Palm Desert's presence online during a time that online exposure is critical and still remains affordable. The City's tourism website would be more difficult to locate through search engines and there would be no online advertising to drive traffic to the site which would ultimately reduce Palm Desert's exposure to the traveling public. Funds are available in Account No. 110-4417-414-3090 (monthly retainer) 110- 4417-414-3221 (media buys), and 110-4417-414-3219 (advertising production). Submitted By: � onna Gomez Ma n Alvarez Tourism & Marketing Mana r Director of Economic Development � , CTTYCOUNCILA�'ION APPROVED DENIED RECEIVED OTHER Paul S. Gibson, Director of Finance MEETI�T ,D 'E ` l AYES: Approval: NOES: ABSENTs - ABSTAIN: � YERIFIED BY: � � Original on File wjth City rk's Office hn M. Wohlmuth, City Manager G:Uda�Donna\S[aff Reports�2013�Digital Marketing S[afFReport FY 2013-14.doc CONTRACT NO. C32021 MARKETING SERVICES AGREEMENT This Marketing Services Agreement ("Agreement") is entered into this 13th day of June, 2013, by and between the CITY OF PALM DESERT, a municipal corporation, ("CITY") and OFF MADISON AVE, Inc., hereinafter referred to as ("AGENCY"). The CITY and AGENCY are sometimes collectively referred to as "Parties" and individually referred to as "Party." The Agreement is made in light of the following recitals: RECITALS A. CITY desires to engage AGENCY to prepare, develop, and implement certain online advertising and marketing programs for the CITY. B. AGENCY desires to prepare, develop, and implement such programs for the CITY. NOW, THEREFORE, in consideration of the mutual promises set forth herein, and in light of the above Recitals, which are hereby made a part of this Agreement, the Parties hereby agree as follows: AGREEMENT 1. Term. The term of this Agreement shall commence on July 1, 2013, and end on June 30, 2014, and may be renewed for one additional one-year period at the option of the City under the same terms and conditions and at the same rates. In all cases, the Agreement renewals shall be approved annually by the City Council and sufficient appropriations shall have been made for the particular fiscal year for which the renewal is sought. 2. Scope of Services. Subject to the terms and conditions of this Agreement, AGENCY shall conduct online marketing tactics and analysis including: a. Account management and consulting services related to all City of Palm Desert online marketing and advertising programs. b. Plan, coordinate, and oversee all online advertising/marketing efforts including but not limited to placement, recommendations, adjustments, and reporting check insertion of approved online advertising and otherwise verify proper execution. c. Develop a strategic online advertising plan and annual budget in accordance with the guidelines established by the City and its Marketing Committee. The proposed online advertising budget is approximately $155,000. � G:\rda\Donna\Staff Reports\2013\Digital Marketing Contract FY 2013-14.docx CONTRACT NO. C32021 d. Improve the volume and quality of traffic to the City's web site via search engine optimization efforts. Analyze results, make recommendations based on those results, adjust SEO based on those results, and report results. e. Pay-per-click management, recommendations, adjustments, and reporting. f. Development of a monthly e-newsletter including design, content, database management, distribution and results tracking. g. Ensure that all work performed on behalf of the City of Palm Desert be billed to the City at net amounts. h. Work closely with members of City Staff, Marketing Committee, as well as other City contractors and vendors. i. Plan, organize, and oversee special requests or projects assigned by the City. j. Establish acceptable timetables for all marketing, advertising, and special projects produced on behalf of the City. k. Evaluate all proposals submitted to the City and issue recommendations based on cost, validity, and perceived benefits to the marketing/advertising objectives of the City. I. Provide quarterly reports summarizing project activities and achievements of all services outlined in this scope of work. m. Attend a Marketing Committee meeting to present reports as needed (minimum of one per year). n. Maintain regular communication with City staff including the hosting of bi- weekly telephone conference calls. o. Development and creative services at a minimum of six (6) hours per month. p. Development and implementation of a public relations plan. q. Management of the City's tourism website including providing updates as needed. If for any reason one or more of the above listed items are found to be unnecessary during the course of this agreement, CITY reserves the right to adjust fees, including the AGENCY's monthly fee, and reapply those fees to either an alternate item contained within the Scope of Work or a special project as determined by CITY. 3. Compensation. Prior to performing any services or furnishing any material contemplated by this Agreement to be undertaken and furnished by AGENCY, the CITY or its designee, after conferring with AGENCY, shall authorize the services rendered and materials to be furnished, the agreed compensation to be paid for these services, the manner of payment, the description of the estimate of reimbursable expense, and such other matters as may be deemed proper. Subject to the limitations and provisions set forth in this Section, the CITY shall compensate and reimburse AGENCY as follows: 2 G:\rda\Donna\Staff Reports\2013\Digital Marketing Controct fY 2013-14.docx CONTRACT N0. C32021 a. The CITY will pay AGENCY a monthly fee of $7250.00 to cover services outlined in Section 2. The Parties estimate that AGENCY will provide an average of approximately sixty (60) hours per month of services; the actual number of hours provided in a given month may be more or less than fifty (60), but over the 12 month period of the Agreement, hours of services shall not exceed eight hundred (800). If services exceed eight hundred (800) hours, additional fees may be required. b. Any work outside the scope contained in this Agreement, including but not limited to, additional landing page design, website updates, HTML coding, program development, ad design, and adding content, will be billed at One Hundred Twenty Five dollars ($125.00) per hour or an agreed upon project fee. c. AGENCY will purchase online media at the lowest rate available. All billings will be submitted at net costs for payment by the CITY. AGENCY will not markup billings or receive commissions. d. CITY shall pay AGENCY the fee as outlined in Section 3a at the beginning of each month for the prior month. Each invoice shall contain, in reasonable detail, the projects and services worked on and rendered with supporting documentation or reimbursable costs and expenses for the previous month's activities. Payment and reimbursement will be made in due course of payment by the CITY. e. AGENCY shall keep full and accurate books of accounts and records and other pertinent data in accordance with generally accepted accounting principles reflecting all transactions contemplated by this Agreement. 4. Termination. Either Party may terminate this Agreement at any time by giving the other Party thirty (30) days written notice of its intent to terminate, provided, however, the CITY's obligation to compensate and reimburse AGENCY for services rendered or materials furnished or contracted for as of the date of notification by either Party of the election to terminate, shall continue in accordance with the terms herein. 5. Owner of Work. Once Agency is paid in full, all art work, advertisement of any form, online content, or other materials ("Advertising Materials") shall be property of the CITY subject to any third party ownership and/or use restrictions. AGENCY specifically transfers any "right of reproduction" as defined by California Civil Code 3 G:\rda\Donna\Staff Reports\2013\Digital Marketing Contract FY 2013-14.docx CONTRACT NO. C32021 Section 982 and Section 988 to the CITY and its assigns. Advertising Materials are governed by the following Selections: a. To the extent applicable, AGENCY agrees that all Advertising Materials created for the CITY are considered "work made for hire" as defined in the United States Copyright Act, Title 17, United States Code. Nofinrithstanding the foregoing, AGENCY may use and disseminate any Advertising Materials developed by AGENCY for the CITY to promote AGENCY, including disclosure of the Parties' relationship to others, work performed, and projects developed and/or implemented. b. Notwithstanding the foregoing, all software applications, databases, computer programs (including source code and object code for any such programming), and executable code (collectively "Code") as well as other creative content and materials in existence prior to this Agreement (or created outside the scope of this Agreement) and all Code or portions thereof developed or provided by AGENGY hereunder, excluding any materials provided by the CITY ("Agency Property"), shall remain the sole and exclusive property of AGENCY. Upon full payment all sums due and owing to AGENCY, AGENCY hereby grants a fully paid-up perpetual, non-exclusive, non-transferable license to the CITY to use internally and only for the benefit of the CITY such Agency Property solely as integrated into the Advertising Materials. For clarity, it is understood the AGENCY shall own all modifications, improvements or enhancements to the Agency Property and any and all Code utilized by AGENCY, or made available by AGENCY for use by the CITY, that is not integrated within the Advertising Materials, may not be used by the CITY after the term of this Agreement except pursuant to a separately negotiated license agreement. c. Notwithstanding the foregoing, any Advertising Materials prepared or proposed by AGENCY but not produced and published or broadcast within the term of this Agreement, and any Advertising Materials prepared or proposed by AGENCY and rejected by the CITY, shall remain property of AGENCY, which shall have the right to use same as it sees fit, including use for any other client, provided such use shall not involve the release of any confidential information regarding the CITY's business or methods of operation. 6. Confidentialitv. Each Party (the "Recipient") shall take reasonable steps to protect proprietary and confidential information and materials (hereinafter "Confidential Information") provided by the other Party or its representatives (the "Discloser") from improper disclosure. Confidential Information shall not include information previously 4 G:\rda\Donna\Staff Reports\2013\Digital Marketing Contract FV 2013-14.docx CONTRACT NO. C32021 known to Recipient or materials to which Recipient had access prior to the provision of such information or materials by Discloser; information or materials that are now or later become publicly known; or information or materials provided to Recipient by a third Party not bound by a duty of confidentiality to Discloser. Recipient shall inform Discloser of all inquiries into or requests for Discloser's Confidential Information by third parties and shall disclose Confidential Information to such third parties only when legally compelled to do so and after notice to Discloser, or when so permitted or instructed by Discloser. Notwithstanding any other provision of this Agreement, Confidential Information shall not include any CITY information or material that is not conspicuously marked as Confidential Information upon delivery to AGENCY. Further the CITY acknowledges that the media rates negotiated by AGENCY on behalf of the CITY are protected by AGENCY as trade secrets and are not generally known by the public or AGENCY's competitors. The disclosure of rate information to third parties, including but not limited to any advertising agency or media planning or buying service, or discussions of these rates with the media by the CITY, may cause the media to withdraw the rates. AGENCY also agrees to maintain adequate books and records all works in progress throuqhout the duration of this Agreement. Said books and records shall be and remain the property of the CITY upon the expiration or earlier termination of this Agreement. Within five (5) days of any expiration or earlier termination of this Agreement, AGENCY agrees that it shall provide the CITY with the aforementioned books and records. 7. Mutual Indemnification. Except to the extent caused by a Party's (the "Indemnifying Party") negligence or willful misconduct, the Indemnifying Party hereby indemnifies and holds the other Party (the "Indemnified Party") harmless for any loss, costs (including all reasonable attorneys' fees) or damage suffered by the Indemnified Party due to, or related to, an material or information furnished by the Indemnifying Party; materials and/or projects developed by the Indemnified Party in any advertising or public relations; other material or projects developed for the Indemnifying Party; or any claims made against the Indemnified Party by a present or former employee of the Indemnifying Party due to or related to the Indemnifying Party's investigation or interviewing of such employee, and the results thereof, for the project. 8. Notices. Whenever it shall be necessary for either Party to serve notice on the other regarding this Agreement, such notice shall be served either in person, by certified mail, return receipt requested to the addresses below. 5 G:\rda\Donna\Staff Reports\2013\Digital Marketing Contract FY 2013-14.docx CONTRACT NO. C32021 CITY: City of Palm Desert 73-510 Fred Waring Dr. Palm Desert, CA 92260 ATTN: City Manager AGENCY: Off Madison Ave., Inc. 5555 E. Van Buren, Suite 215 Phoenix, AZ 85008 ATTN: Roger Hurni Such notice shall be deemed made when personally delivered or when mailed, forty- eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the Party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service. 9. Leqal Costs. In the event of any legal action between the CITY and AGENCY arising out of the obligations of the Parties pursuant to this Agreement, the prevailing Party will be entitled to payment of its costs and expenses, including its attorneys' fees. 10.Bindinq Effect; Successors. AGENCY shall not assign or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the CITY, which may be given in the CITY's sole and absolute discretion. Any attempt to do so shall be null and void, and any assignees or transferees shall acquire no right or interest by reason of such attempted assignment or transfer. This Agreement shall bind and inure to the benefit of the Parties and their respective heirs, legal representatives, successors and assigns and all of the Parties thereto shall be jointly and severally liable hereunder. 11.Counterparts. This Agreement may be executed in counterparts each of which shall be deemed an original and all of which together shall constitute one and the same instrument which shall be binding upon the Parties notwithstanding that the Parties may not be signatories to the same counterpart or counterparts. The Parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. 12.Further Assurances. Whenever requested to do so by the other Party, each Party shall execute, acknowledge, and deliver any further conveyances, assignments, confirmations, satisfactions, release, powers of attorney, instruments of further assurance, approvals, consents, and any further instruments or documents that are 6 G:\rda\Donna\Staff Reports\2013\Digital Marketing Contract FY 2013-14.docx CONTRACT N0. C32021 necessary, expedient, or proper to complete anything contemplated by this Agreement. In addition, each Party shall do any other acts and execute, acknowledge, and deliver any requested documents in order to carry out the intent and purpose of this Agreement. 13.Modifications. All modifications to the Agreement must be in writing and signed by the Parties. 14.Third-Party Riqhts. Nothing in this Agreement, express or implied is intended to confer upon any person, other than the Parties and their respective successors and assigns, any rights or remedies. 15.Governinq Law; Choice of Venu�. This agreement shall be governed and construed in accordance with California law. Venue shall be Riverside County. 16.Severabilitv. If any provision of the Agreement becomes or is declared by a court to be illegal, unenforceable or void, that clause will be omitted and the remainder of the Agreement will continue in full force and effect. Such holding shall in no way affect the validity or enforceability of this Agreement. 17.Entire Aqreement. This Agreement is the agreement between the Parties and supersedes any prior or contemporaneous representations, understandings or agreements, whether written or oral. 18.Non-Solicitation of AGENCY Employees. CITY agrees that during the term of this Agreement and for a twelve (12) month period following any termination of this Agreement, CITY will not, either directly or indirectly, on its own behalf or on behalf of its affiliates or other solicit, employ, manage, divert or hire away, or attempt to solicit, divert or hire away any person who is (or was at any time during the term of this Agreement or such twelve (12) month period following) employed, contracted or consulting with the AGENCY. The obligations of this Section shall survive the termination of this Agreement. � G:\rda\Donna\Staff Reports\2013\Digital Marketing Cont2ct FY 2013-14.docz CONTRACT NO. c��n�i IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective authorized officers or representatives as of the date and year first above written. OFF MADISON AVE, Inc. CITY OF PALM DESERT A Municipal Corporation By: By: Roger Hurni, Partner Jan Harnik, Mayor Date: Date: (Signature must be notarized) ATTEST: By: Rachelle D. Klassen, City Clerk 8 G:\rda\Donna\Staff Reports\2013\Digital Marketing Contract FY 2013-14.docx